If the money multiplier is 3 and the Fed buys $50,000 worth of bonds, what happens to the money supply?
a. it increases by $100,000
b. it increases by $150,000
c. it decreases by $100,000
d. it decreases by $200,000
b
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All of the following will shift the short-run aggregate supply (SRAS) curve EXCEPT
A) a change in the price of labor. B) technological progress. C) a change in the price of a needed raw material. D) a change in the price level.
The Cold War, or "war on communism,"
a. was the most expensive war of the twentieth century. b. is believed to have caused an increase in defense spending that came at the expense of private consumption rather than private investment. c. is believed to have caused an increase in defense spending that came at the expense of private investment rather than private consumption. d. Both a and b are correct. e. Both a and c are correct.
______ creates inefficiency in a labor market by preventing firms from hiring employees whose marginal revenue product is above the market wage
a. Efficiency wage b. Labor union c. Labor shortage d. Discrimination
In the short run:
A. some inputs are fixed. B. firms can choose among all possible production techniques. C. all inputs are variable. D. firms can use any input combination they want.